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Current Issues in Tourism Restaurant tipping in Europe: a comparative assessment

Stefan Gössling, Sébastien Fernandez, Carlos Martin-Rios, Susana Reyes, Valérie Fointiat (), Rami Isaac and Merete Lunde
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Stefan Gössling: Linnaeus University
Sébastien Fernandez: University of Applied Sciences of Western Switzerland
Carlos Martin-Rios: University of Applied Sciences of Western Switzerland
Susana Reyes: Universidad Pablo de Olivade
Valérie Fointiat: LPS - Laboratoire de Psychologie Sociale - AMU - Aix Marseille Université
Rami Isaac: Breda University of Apllied Sciences
Merete Lunde: Western Norway Research Institute [Sognda]

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Abstract: Tipping is a social norm in many countries and has important functions as a source of income, with significant social welfare effects. Tipping can also represent a form of lost tax revenue, as service workers and restaurants may not declare all cash tips. These interrelationships remain generally insufficiently understood. This paper presents the results of a comparative survey of resident tipping patterns in restaurants in Spain, France, Germany, Switzerland, Sweden, Norway, and the Netherlands. ANOVA and ANCOVA analyses confirm significant variation in tipping norms between countries, for instance with regard to the frequency of tipping and the proportion of tips in relation to bill size. The paper discusses these findings in the context of employment conditions and social welfare effects, comparing the European Union minimum wage model to gratuity-depending income approaches in the USA. Results have importance for the hospitality sector and policymakers concerned with social welfare.

Keywords: Economic value; minimum wage; restaurants; service gratuity; social welfare; tipping (search for similar items in EconPapers)
Date: 2020-03
New Economics Papers: this item is included in nep-eur and nep-tur
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Published in Current Issues in Tourism, 2020, ⟨10.1080/13683500.2020.1749244⟩

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DOI: 10.1080/13683500.2020.1749244

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